London Daily

Focus on the big picture.
Friday, Nov 06, 2026

Suez Canal blockage could alter shipping forever…and China and Russia will be the winners

Suez Canal blockage could alter shipping forever…and China and Russia will be the winners

The need for alternative international shipping routes has been highlighted by events on the Suez Canal over the past week. And with their plans already taking shape, Beijing and Moscow are well positioned to capitalise.
The Suez Canal’s recent spell in the limelight has turned out to be quite revealing. The strategic waterway has dominated headlines for a week after a giant container ship, the Ever Given, got stuck in sand and mud at the canal’s southern end, blocking it and bringing shipping to a halt.

The welcome news emerged yesterday that the crisis is finally over and shipping can resume, but it won’t be without repercussions. In a world already battered by the Covid-19 pandemic – which itself has had huge implications for shipping – the blockage of the canal is a firm reminder of just how fragile core transcontinental shipping routes can be.

This was a relatively short blockage, but its consequences will be felt for a long time and will serve as a boost to China and Russia, both of whom are introducing new game-changing intercontinental freight routes.

The Suez Canal is a product of an era during which globalisation, as we understand it today, was emerging, to facilitate the flow of free trade as well as the naval aspirations of empires such as the British and the French. Cutting through the dividing line between the African and Asian continents, its creation was a revolutionary feat which strategically connected the Mediterranean with the Red Sea and the Indian Ocean, giving a direct intercontinental shipping route from Europe into Asia. No longer was the time-consuming, tremulous journey around the Cape of Good Hope necessary, and the canal’s existence allowed the British to exploit India to their own wishes. In short, Suez changed the world.

As a result, it is no surprise that various episodes in the Suez throughout history, no matter how brief they may have been, have played a key role in prompting big geopolitical shifts. The Suez Crisis of 1956, whereby Britain sought to regain strategic control of the canal following its nationalisation by Egypt’s President Nasser, proved to be a moment of reckoning for British Imperialism.

The dual opposition from both the US and the Soviet Union forced London to recalibrate its long-held outlook of being a global naval power, and instead turn towards Europe. Given this history, it’s not outlandish to recognise that this Suez crisis will also have big consequences, even though there was no military dynamic.

Although the Ever Given hold-up was just a week, it has proven expensive. The estimated costs of blockage in the canal amount to around $9 billion per day and could have a run-on effect of reducing annual global trade growth by 0.2-0.4%. It also sent the cost of shipping up temporarily by 46% as ships were forced to avoid the canal and transit around Africa, with longer and more inconvenient journeys.

It is inevitable that faced with such circumstances, shipping and freight companies will inevitably seek out cheaper, less risky and more effective routes. And most crucially the crisis has come at a time when new alternatives are appearing which are likely to be more competitive than Suez on every level.

The first one is China’s Belt and Road Initiative. Beijing’s global project has invested hundreds of billions in the creation of new ports, railways, and roads on multiple continents, all of which are changing the logistical landscape. One of its most powerful achievements has been the initiation of multiple China-Europe Railway routes, where new cargo trains allow freight to be shipped directly from cities in China across Eurasia as far west as London and Portugal.

There are two main arteries to this project; one which reaches Europe via Russia and branches out into individual countries, and another which crosses central Asia, transits through Turkey, extends up through the Balkans and terminates at Prague.

These routes have dramatically reduced the shipping time for goods across the continent, and as a result of Covid-19, the volume of cargo has surged to a record high.

Secondly, there is Russia’s Northern Sea Route across the Arctic, which extends through the country’s exclusive economic zone and allows a through-route from one end of Eurasia to the other. Moscow is investing heavily in infrastructure as well as ice breaking ships, touting it as a slick alternative to the risks of Suez.

China is also interested in the far north, too, pledging to create a ‘Polar Silk Road’. The opening of this previously closed region for commerce will undoubtedly speed up shipping times and comes as a part of a ‘strategic competition’ for the Arctic region as a whole, with President Trump’s administration having aggressively renewed America’s interest in Greenland.

The last week’s problems in Suez therefore echo the past. While historically great powers such as Britain and France sought to establish and control the strategic route in pursuit of commercial gains, the grounding of the Ever Given illustrates how the powers of today are continuing to compete in creating and sustaining new shipping routes which will completely alter the flow of global commerce.

Suez is back to normal, yet the waters of the canal run still amid the flow of an otherwise changing world as businesses scramble for new and quicker routes to transport their goods following a year of crisis. Things are moving again between the Red and Mediterranean seas, but one might wonder if this proves to be a turning point for Suez, with its significance starting to wane.
Newsletter

Related Articles

0:00
0:00
Close
High Court Rules in Favor of Comprehensive Transparency Review Regarding Government Artificial Intelligence Procurement Contracts
Home Office Expands Digital Border Security and Electronic Travel Authorization Systems Across International Arrivals
Scottish Government Confirms Accelerated Investment in Offshore Renewable Energy Infrastructure Across North Sea Corridors
Department for Environment Food and Rural Affairs Implements Stricter Water Company Oversight and Environmental Penalties
National Health Service England Unveils Emergency Winter Resilience Package to Tackle Acute Accident and Emergency Backlogs
Office for National Statistics Reports Gross Domestic Product Growth Stagnated at Zero Point One Percent in Third Quarter
Chancellor of the Exchequer Outlines Comprehensive Fiscal Strategy to Stabilize National Borrowing and Public Spending
Bank of England Maintains Base Interest Rate at Five Percent Amid Persistent Service Sector Inflation Pressures
Office for National Statistics Reports Stable Consumer Confidence and Modest Retail Growth Heading into Winter
Welsh Government Launches Strategic Regional Transport Initiative to Modernize Rail Links Across South Wales
Home Office Expands Digital Border Security Controls and Electronic Travel Authorisations for Inbound Visitors
Scottish Government Announces Emergency Housing Investment Package to Tackle Urban Homelessness Crises
Northern Ireland Executive Reaches Bipartisan Consensus on Public Sector Pay Reform and Budget Allocations
Automotive Manufacturing Sector in the West Midlands Welcomes New Electric Vehicle Supply Chain Investments
Department for Energy Security and Net Zero Approves Offshore Wind Expansion in the North Sea
HM Treasury Finalizes Regulatory Framework for Stablecoins and Digital Asset Markets in London
National Health Service Unveils Comprehensive Digital Integration Strategy to Slash Hospital Waiting Lists
Bank of England Leaves Interest Rates Unchanged Amid Persistent Wage Growth and Inflationary Pressures
United Kingdom and Caribbean Nations Agree to Establish Formal Diplomatic Dialogue Following Reparations Discussions
Cambridge University Appoints Senior Barrister to Lead Independent Review into Death of Academic Jason Arday
Historic Hastings Castle and Kent Dickens Chalet Added to National Heritage at Risk Register Amid Deterioration Concerns
Incoming British Ambassador to Japan Calls for Deepened Bilateral Cooperation on Artificial Intelligence and Semiconductors
Milburn Review Urges Employment Revolution to Unlock Workforce Opportunities for Young Disabled Britons
British Healthcare Worker Evacuated from Democratic Republic of Congo to United Kingdom Following Ebola Exposure
United Nations Refugee Agency Criticises Government Proposal for Thirty-Year Earned Settlement Pathways for Asylum Seekers
Parliamentary Inquiry Warns United Kingdom Remains Exposed to Chinese Critical Mineral Dependencies
Bank of England Prepares Interest Rate Decision as Inflation Pressures Prompt Expectation of Four Percent Benchmark
Department for Business and Trade Overhauls Protection Standards for Digital Animation and Moving Image Files
Intellectual Property Office Introduces Thirty-Month Grace Period for International Product Launches
Intellectual Property Office Targets Anti-Competitive Filings With New Powers to Verify Novelty Before Registration
Creative Industries Minister Ian Murray Praises Regulatory Reforms to Safeguard Small Businesses and Micro-Enterprises
Government Unveils Major Design Framework Overhaul to Protect British Creators and Boost Economy
Global Asset Management Reports Surge in British Dividend Payouts Driven by Strong Financial and Mining Sectors
HM Treasury Confirms Strongest Group of Seven Growth Figures as Fiscal Consolidation Plans Progress
Department for Energy Security and Net Zero Approves Construction of New North Sea Offshore Wind Hub
Northern Ireland Executive Finalizes Public Sector Pay Agreements Following Months of Inter-Agency Negotiations
Welsh First Minister Eluned Morgan Secures Cross-Party Support for Regional Clean Energy Infrastructure Bill
Competition and Markets Authority Launches Formal Investigation Into Dominant Artificial Intelligence Cloud Partnerships
United Kingdom Foreign Secretary David Lammy Concludes High-Level Diplomatic Mission to Washington and Ottawa
Scottish Government Announces Emergency Housing Investment Package to Address Escalating Urban Homelessness
Chancellor Rachel Reeves Finalizes Corporate Tax Adjustments Ahead of Upcoming Business Investment Summit
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected A&E Overcrowding
Bank of England Monetary Policy Committee Votes to Hold Base Interest Rate Steady at Four Point Seven5 Per Cent
UK Gross Domestic Product Expands by Zero Point Four Per Cent in Third Quarter Driven by Resilient Services Growth
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
×